Correlation Between Annexin Pharmaceuticals and Securitas
Can any of the company-specific risk be diversified away by investing in both Annexin Pharmaceuticals and Securitas at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Annexin Pharmaceuticals and Securitas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Annexin Pharmaceuticals AB and Securitas AB, you can compare the effects of market volatilities on Annexin Pharmaceuticals and Securitas and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Annexin Pharmaceuticals with a short position of Securitas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Annexin Pharmaceuticals and Securitas.
Diversification Opportunities for Annexin Pharmaceuticals and Securitas
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Annexin and Securitas is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Annexin Pharmaceuticals AB and Securitas AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Securitas AB and Annexin Pharmaceuticals is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Annexin Pharmaceuticals AB are associated (or correlated) with Securitas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Securitas AB has no effect on the direction of Annexin Pharmaceuticals i.e., Annexin Pharmaceuticals and Securitas go up and down completely randomly.
Pair Corralation between Annexin Pharmaceuticals and Securitas
Assuming the 90 days trading horizon Annexin Pharmaceuticals AB is expected to under-perform the Securitas. In addition to that, Annexin Pharmaceuticals is 1.87 times more volatile than Securitas AB. It trades about -0.02 of its total potential returns per unit of risk. Securitas AB is currently generating about 0.22 per unit of volatility. If you would invest 12,348 in Securitas AB on September 2, 2024 and sell it today you would earn a total of 1,447 from holding Securitas AB or generate 11.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Annexin Pharmaceuticals AB vs. Securitas AB
Performance |
| Timeline |
| Annexin Pharmaceuticals |
| Securitas AB |
Annexin Pharmaceuticals and Securitas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Annexin Pharmaceuticals and Securitas
The main advantage of trading using opposite Annexin Pharmaceuticals and Securitas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Annexin Pharmaceuticals position performs unexpectedly, Securitas can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Securitas will offset losses from the drop in Securitas' long position.| Annexin Pharmaceuticals vs. Hansa Biopharma AB | Annexin Pharmaceuticals vs. Saniona AB | Annexin Pharmaceuticals vs. Oncopeptides AB |
| Securitas vs. Sprint Bioscience AB | Securitas vs. Acarix AS | Securitas vs. Annexin Pharmaceuticals AB | Securitas vs. KABE Group AB |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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